Buying a home in Durham Region
We help you buy with a mortgage that fits the rest of your life. We compare options across many lenders and explain each one before you choose.
- Pre-approval and budget
- Down payment and closing costs
- Rate hold while you shop
- Lender conditions through to closing
Pre-approval comes first
A pre-approval shows what a lender is likely to approve and holds a rate for a set period, often 90 to 120 days. It is not a final approval. The lender still reviews the property and your documents once you have an accepted offer.
Closing costs are separate from the down payment
Plan for land transfer tax, legal fees, title insurance and adjustments on top of your down payment. Budget about 1.5% to 4% of the price for these costs. In Toronto, you pay a municipal land transfer tax as well as the Ontario one.
Answers
All answersHow much do I need for a down payment in Ontario?
The minimum is 5% on the first $500,000 of the price and 10% on the portion from $500,000 to $1.5 million. Homes priced at $1.5 million or more need at least 20% down. With less than 20% down, you also pay for mortgage default insurance.
What is the mortgage stress test?
It is the rate you have to qualify at, which is the greater of your contract rate plus 2% or 5.25%. It applies to insured and uninsured mortgages at federally regulated lenders. Your actual payments are still based on your contract rate.
How long does a mortgage pre-approval last?
Most pre-approvals hold a rate for 90 to 120 days, depending on the lender. A pre-approval is not a final approval. The lender still reviews the property and your documents after your offer is accepted.
What closing costs should I budget for when buying a home?
Plan for land transfer tax, legal fees, title insurance, a home inspection and property tax adjustments. Budget about 1.5% to 4% of the purchase price for closing costs. In Toronto, you pay both the Ontario and the municipal land transfer tax.
Do I need mortgage insurance?
You need mortgage default insurance when your down payment is less than 20%. The premium is based on how much you borrow compared with the price, and it is usually added to the mortgage. In Ontario, the provincial sales tax on the premium is paid at closing.
Can I use a gift from family for my down payment?
Yes, most lenders accept a gift from an immediate family member. They usually want a signed gift letter confirming it does not need to be repaid, and proof the funds are in your account before closing.